Regulating Electronic Credit Information
X. Rights of the Borrower
Protection to the borrowers was introduced to entice more business entrepreneurs to expand their business and as incidental consequence produce employment. The borrower in this law was given the right to know the causes of refusal or denial the loan application that used for credit facilities or services from financial institution that uses basic credit information as basis or ground for such a refusal. To the author’s opinion, the reason for this provision in the law is due the existence of the “unwritten rule” in granting loans to an individual.
The borrower, for reasonable fee, shall have, as a matter of right, ready and immediate access to the credit information pertinent to the borrower. In case of incorrect, incomplete or misleading credit information, the subject borrower shall have the right to dispute such before the Corporation.1
XI. The Confidentiality of the Credit Information
The Corporation and other parties shall hold the credit information under strict confidentiality and shall use the same only for the declared purpose of establishing the credit worthiness of the borrower. The accreditation of a subscriber or an accessing entity, a special entity and/or an outsource entity which violates the confidentiality of, or which misuses, the credit information accessed from the Corporation, may be suspended or revoked, in addition to the possible criminal liability of violators.2
The Corporation shall be authorized to release and disclose consolidated basic credit data only to the Accessing Entities, the Special Accessing Entities, the Outsource Entities and Borrowers. Basic Consolidated basic credit data released to Accessing Entities shall be limited to those pertaining to existing Borrowers or Borrowers with pending credit applications. Credit information shall not be released to entities other than those enumerated under Section 6 of this law except upon order of the court.3
XII. The Notice Required from the Submitting Entity
Submitting Entity refers to any entity that provides credit facilities such as, but not limited to, banks, quasi-banks, trust entities, investment houses, financing companies, cooperatives, nongovernmental, micro-financing organizations, credit card companies, insurance companies and government lending institutions.4 In other words the submitting entities are the lenders.
Each submitting entity shall notify its borrowers of the former’s obligation to submit basic credit information to the Corporation and the disclosure thereof to the Corporation, subject to the provisions of this law and the implementing rules and regulations.5
